Tensions between Henrico County and the operators of the Roseshire gambling parlor continue to boil over — with legal documents revealing the county’s attempts to block the facility from being approved to sell alcohol, while a separate lawsuit seeks to strip the venue of its operating license altogether.

Recently obtained documents from the Virginia Alcoholic Beverage Control Authority that reveal concerns raised by county leaders and residents over the horse racing betting site.

The county is attempting to block the venue from obtaining a license to serve alcohol. Opponents argue that combining gambling and alcohol would significantly intensify the venue’s impact on crime and noise in the surrounding Lakeside community.

Roseshire — a gambling parlor operated by Colonial Downs Group, a subsidiary of Kentucky-based racing company Churchill Downs Inc. and the owner of Rosie’s Gaming Emporium — opened in late September after obtaining its license to operate from the Virginia Racing Commission. The venue features 175 historical horse racing machines (betting terminals similar to slot machines), as well as a restaurant, bar and live entertainment stage.

During an administrative hearing with Eric English testified that the county has seriVirginia ABC in October, Henrico Police Chief ous concerns about the site’s location near a high-crash corridor along Staples Mill Road and warned that alcohol service could place additional strain on police resources. 

Legal filings submitted by objectors cited safety, traffic and pedestrian risks and expressed concern that Roseshire could mirror problems seen near other gaming facilities. Residents described fears of increased crime, late-night disturbances and declining home values. 

Several testified that the venue would “substantially interfere with the usual quietude and tranquility” of nearby residential areas, particularly if alcohol is served. Others raised concerns about the proximity of addiction recovery homes and the potential for alcohol and gambling to reinforce harmful behaviors. 

Colonial Downs Group sharply criticized both the county and resident objectors, framing the ABC proceeding as an improper attempt to relitigate the gambling license itself. 

“This matter involves a challenge to Roseshire’s application for an alcoholic beverage license, not a license to operate Historic Horse Racing terminals,” the company wrote in a court filing, adding that opponents were using the ABC process because it “appears to be the opposition’s last administrative resort.” 

The company argued that Roseshire was a lawful, by-right use of the property when it applied for permits and that it “was not obligated to submit to any referendum process” or obtain informal neighborhood approval. 

According to Colonial Downs, neither county officials nor residents produced evidence showing that alcohol service would lead to violations of law, disruptions to nearby neighborhoods or declines in property values. The objections, the company wrote, amounted to “supposition, conjecture, [and] unfounded fears.” 

Henrico leaders have also taken the legal offensive against the controversial gaming site in Richmond City Circuit Court, arguing that the Virginia Racing Commission was wrong to grant an operating license to Roseshire. (The state law establishing the racing commission requires that any legal challenges against it be brought in Richmond.) 

Churchill Downs obtained its state license in Henrico by relying on an old voter referendum, passed in November 1992, which permits pari-mutuel wagering in the county — even though the General Assembly passed statewide legislation in 2018 allowing for licensing of historical horse racing terminals. 

County leaders claim that the proposal was designed to circumvent the public approval process. Henrico amended its zoning ordinance in 2024 to require additional public input for historical horse racing facilities; Churchill Downs submitted its permit application less than a month before the new rules went into effect. 

Several similar gambling facilities, including Rosie’s locations in New Kent County and Hampton, have been approved via referendums passed before the General Assembly’s 2018 legislation, but the county argues that the venue was permitted “without the county’s consent and over the county’s express objections.” 

The county, alongside a group of residents who live near the venue at Staples Mill Road and Glenside Drive, have petitioned the court to overrule the VRC’s decision and strip the venue of its operational licenses. 

Richmond City Circuit Court has not yet acted on the county’s petition. Virginia ABC has until Feb. 8 to decide whether the venue will receive its alcohol license.